UPDATE: Bank of America Decreases PO on KEMET Corp. to $12

According to a research report this morning, Bank of America decreases its PO for KEMET Corp.

from $13 to $12 following major strategic change. Bank of America explained, “KEM has embarked on a major strategic change with the acquisition of Niotan (vertical integration) and the pending acquisition of a stake in NECTokin financed by newly issued debt. In our view, the net of all the moving pieces is lower near term estimates on weaker demand and increased interest expense but potentially higher longer term estimates from the margin benefits from Niotan and equity contribution from NEC-Tokin (100% level from F15).” KEMET Corp closed Friday at $8.22 as Bank of America maintains its Buy rating.